how the stock market work

The stock market is a **constellation of marketplaces** where securities like **stocks** and **bonds** are bought and sold. Let me break it down for you:

1. **What Is the Stock Market?**
- The stock market is the **main financial venue** where investing happens.
- It's a collection of all the places where matches are made between **buyers and sellers trading shares of public companies**.
- The term "stock market" can refer to the entire world of securities trading, including **stock exchanges** where shares of public companies are listed for sale and markets where other securities are traded.
- The **New York Stock Exchange (NYSE)** is the biggest stock market on earth.
- **Market indexes** like the **S&P 500** and the **Dow Jones Industrial Average** aggregate the prices of groups of stocks, indicating the day-to-day performance of the stock market as a whole¹.

2. **How Does the Stock Market Work?**
- Companies raise money on the stock market by **selling ownership stakes to investors**. These equity stakes are known as **shares of stock**.
- By listing shares for sale on the stock exchanges that make up the stock market, companies get access to the capital they need to operate and expand their businesses without taking on debt.

Source: Conversation with Bing, 14/04/2024
(1) How Does the Stock Market Work? - Investopedia. https://www.investopedia.com/articles/investing/082614/how-stock-market-works.asp.